US Natural Gas Prices Spike on Heat Wave Forecasts
Natural gas prices in the US have risen by 2.27% to ₹270.80 due to forecasts of prolonged and intense heat across the southern and western United States, particularly Texas. This heat wave is expected to boost air-conditioning demand, electricity consumption, and gas-fired power generation.
The Houston area is predicted to experience temperatures averaging around 100°F between August 20 and 23, while peak electricity demand on the Texas grid could reach a record due to declining wind generation. However, domestic production remains strong, with Lower 48 output averaging 111.6 billion cubic feet per day in August, above July's record 110.7 bcfd.
US inventories have been maintained above the five-year average since March, despite relatively mild weather earlier this year. Gas flows to the nine major US LNG export facilities averaged 17.2 bcfd in August, indicating steady export demand.